President Yoweri Museveni has halted the sale of the Pearl of Africa Hotel, which was being pursued by money lenders from South Africa.
In a letter addressed to the Industrial Development Corporation of South Africa Ltd through their lawyers Marks Advocates, Museveni stated,
“I have been approached by Mohammed of Aya Investments (U) Ltd Group regarding the imminent sale of his hotel due to his indebtedness to Industrial Development Corporation, South Africa. I have been informed that the sale has been sanctioned by courts having decided several cases in your favor. However, given that Pearl of Africa Hotel is a strategic investment that was supported by the government through land allocation and other benefits, the government wishes to intervene so that the debt is paid instead of auctioning the hotel. I, therefore, wish to hold a meeting with you to discuss other ways of recovering your loan instead of selling the hotel. I am, therefore, directing that the auctioneer halts the sale of the hotel pending my meeting with you.”
The Pearl of Africa Hotel has struggled to operate due to financial challenges and substantial debts owed to creditors, including banks and utility companies. The hotel was put on notice for auction to liquidate assets and pay off close to 600 billion shillings in debt.
